Each year, individuals and families all across the country take the leap and build the homes of their dreams. New construction is an incredible chance to build something that perfectly matches your needs, but there are a number of moving parts in the process. Do you know how prepared you are to take the next step?
Check out these key points to consider before you begin your build.
What's Your Timeline?
According to realtor.com, it takes three to six months on average to build a new house—longer if your project is particularly big, complicated or met with delays. The speed with which your house is built depends on a massive list of variables ranging from location to weather to builder and everything in-between. Do you need to have your house completed in a certain period of time? If so, make sure to do your research and find a builder who has a reputation for getting his or her jobs done on time.
What Are Your Needs?
Most people first consider building because they either can't find houses in their area that fit their criteria, or because they already own land that they want to live on. Regardless of your reason, it's important to think about why new construction is so appealing to you and to assemble a complete list of features you want your future home to include before you have someone draw up the blueprints. This list can be as detailed as you want it to be, but little things—such as the width of the hallways, the height of the ceiling and the laundry room's proximity to the master bedroom—can have a sizable impact on the feel of your home when all is said and done.
How Will You Fund the Build?
There are two major types of construction loans available—construction-to-permanent and stand-alone construction loans. Which one you choose depends upon how you plan to approach your build. A construction-to-permanent loan automatically converts into a mortgage once you've finished construction on your house. This is an excellent option for those who have cash on hand for a larger downpayment. Stand-alone construction loans are separate from your home mortgage and only require you to pay interest over the course of construction. These loans are convenient for homeowners who don't have as much money on hand for downpayments but will have more money to pay toward the cost of construction once they sell their current homes.
Can You Build 'Sweat Equity?'
Sweat equity is the value that you add to your home with your own two hands. If you're handy, you can limit the cost of building a new home simply by doing a few things yourself to finish up the process. If you have building experience, maybe you can hang, mud and tape your own drywall. If you're new to home construction and renovation, consider doing little things like installing light fixtures or painting. No matter what your level of skill or experience, odds are good that you have what it takes to save some money on your construction costs will a little bit of hard work and elbow grease.